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Bank of England Chief says Britain in deep recession

by Michael Smith

In a statement on Wednesday, February 11, 2009, Mervin King, the head of the Bank of England, said that Britain is in a deep recession but, it would appear, that like the politicians as well, he is not willing to accept the fact that it is a D and not a R; in other words, it is not just a recession, it is a depression. The governor might do well to have another look at the letters of the alphabet; depression is spelled with a “D” and in this case an uppercase one too.

Mervin King said further that the economy is going into the minus range, as if people hadn't realized that as yet. The only one that does not seem to be able to realize this and willing to accept it are the Labor regime of the UK and the state bank.

The Governor of the Bank of England also stated that other measures will have to employed, other than interest cuts, as the interest rate can basically be cut not much further, and are talking about the need to “print money”. This is NOT a good idea, as we have seen in places such as the former Rhodesia.

We need to find a new way and a new style of economy or the way things are for it is no longer going to work the way things are being done.

The present system is “kaput”, as they would say in German; it is broken, and the way I see it it is not fixable either. It if finished and we need to have a look at some new options. Some of those options are not, in fact, that new and are age old and well tested.

The system of buying on credit might be something that must be reconsidered as far as the individual consumer is concerned and either it is cash, check (though nearly no one wants to accept them bits of paper no more because of the costs of processing them) or debit card. In other words, if one does not have the money – saved – in an account or under the mattress – then one cannot buy the thing that one desires. A good was to be, methinks.

The greedy banks got us into this and we must never let them do this again.

© M Smith (Veshengro), February 2009

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